ROSARIO, Argentina--(BUSINESS WIRE)--Bioceres Crop Solutions Corp. (Bioceres) (NASDAQ: BIOX), a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change, announced financial results for the fiscal fourth quarter and fiscal year ended June 30, 2024. Financial results are expressed in U.S. dollars and are presented in accordance with International Financial Reporting Standards. All comparisons in this announcement are year-over-year (YoY), unless otherwise noted.
Financial & Business Highlights
- Total revenues in FY24 were $464.8 million, an 11% growth compared to the year before despite challenging market conditions in some geographies. Revenue growth in FY24 was largely driven by increases in HB4 sales, adjuvants and biostimulants. Operating profit for the period was $44.8 million with GAAP net income at $6.2 million. Adjusted EBITDA for the full fiscal year was $81.4 million, steady with respect to last year as growth in the business compensated for the lower accrual of Syngenta´s up-front payment versus last year.
- Revenues in 4Q24 were $124.0 million, an 18% growth compared to the year before, primarily led by higher HB4 sales. Operating profit was $9.5 million, and GAAP net loss was $2.1 million in 4Q24, improving by 86% and 25%, respectively. Adjusted EBITDA for the quarter was $19.9 million, almost doubling last year´s metric.
- HB4 Wheat approved for cultivation in the United States, the fourth largest wheat producer in the world and the largest in the Americas. United States is now the fourth country in the world to greenlight production of HB4 wheat, following Argentina, Brazil and Paraguay.
Management Review
Mr. Federico Trucco, Bioceres´ Chief Executive Officer, commented: “In fiscal year 2024 we consolidated Bioceres’ financial performance at record-high revenue and adjusted EBITDA levels, despite it having been another challenging year for agriculture, with on-farm economics declining in key crops and geographies. The annual result was achieved through sales growth and an almost doubling of adjusted EBITDA in the fourth and final quarter of the year, with close to half of the increased profitability of the quarter resulting from the HB4 business.
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1 Adjusted EBITDA is a non-GAAP measure. See “Use of non-IFRS financial information” for information regarding our use of Adjusted EBITDA and its reconciliation from the most comparable financial measure. |
“We are increasingly excited by the prospects for our most innovative technologies. Earlier in the fiscal year, we obtained patent protection for our UHC biological nitrogen fixation solution, as well as regulatory clearance for our bio-insecticide platform in Brazil, both of which are critical for near-term expansion in the high-growth seed-applied technologies market. More recently, we received notice from APHIS that green-lights cultivation of HB4 wheat in the U.S., an outcome which was long awaited. This regulatory endorsement helps us in markets where we are already scaling HB4 sales, as it provides additional validation or regulatory comfort. In the medium term, it allows us to expand into a new and important geography, potentially doubling the combined opportunity of Latin America and Australia.
“As we look ahead, we remain focused on launching and scaling our portfolio of unique technologies, while constantly engaging with farmers and other stakeholders to fine-tune our value proposition and market access strategies.”
Mr. Enrique Lopez Lecube, Bioceres' Chief Financial Officer, noted: “Our financial results for FY24 demonstrate once again the resilience of our business and the strategic value of maintaining a diversified yet coherent and continuously evolving portfolio of technologies. In the fourth quarter, we increased our profitability across operating profit and net income and doubled adjusted EBITDA, despite encountering challenging conditions for certain products in the final months of the fiscal year, particularly fertilizers, that impeded our ability to excel in every aspect and achieve annual EBITDA growth from last year’s record high. Annually we achieved top line growth and maintained our full-year adjusted EBITDA above last year’s $81 million threshold, while successfully managing our cost base within a context of industry-wide headwinds that prevailed for most of the year. We intend this year’s result to be a steppingstone towards greater performance as we continue expanding our business with a focus on profitability and enhanced financial performance.”
Key Financial Metrics
Table 1: |
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4Q24 & FY24 Key Financial Metrics |
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(In millions of U.S. dollars) |
4Q23 |
4Q24 |
%CHANGE |
FY23 |
FY24 |
%CHANGE |
Revenue by Segment |
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|
|
|
|
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Crop Protection |
45.1 |
53.2 |
18% |
206.1 |
227.2 |
10% |
Seed and Integrated Products |
20.8 |
33.3 |
60% |
56.7 |
96.4 |
70% |
Crop Nutrition |
38.8 |
37.5 |
(3%) |
157.3 |
141.2 |
(10%) |
Total Revenue |
104.7 |
124.0 |
18% |
420.1 |
464.8 |
11% |
Gross Profit |
40.2 |
47.4 |
18% |
184.6 |
186.6 |
1% |
Gross Margin |
38.4% |
38.3% |
(15 bps) |
43.9% |
40.1% |
(381 bps) |
|
4Q23 |
4Q24 |
%CHANGE |
FY23 |
FY24 |
%CHANGE |
|
|
|
|
|
|
|
GAAP net income or loss |
(2.8) |
(2.1) |
25% |
20.2 |
6.2 |
(69%) |
Adjusted EBITDA |
10.5 |
19.9 |
90% |
81.2 |
81.4 |
0% |
4Q24 Summary: Quarterly revenues were $124.0 million, an 18% increase compared to the same quarter last year. In the fourth quarter, revenue growth was led by HB4 sales as the winter wheat season got underway in the southern hemisphere. Gross profit was $47.4 million, an 18% year-over-year growth, primarily driven by HB4 in Seed and Integrated Products and gross margin expansion in Crop Protection. Operating profit reached $9.5 million, and GAAP net loss was $2.1 million, improving by 86% and 25% compared to the previous year, respectively. Adjusted EBITDA was $19.9 million, almost doubling last year´s metric, on the back of improved gross profit and operational leverage.
FY24 Summary: Total revenues reached $464.8 million in FY24, an 11% year-over-year increase. Growth for the year was primarily driven by the normalization of weather conditions in the southern hemisphere, with HB4 sales, adjuvants, and other crop protection products leading the growth. Biostimulant sales in Europe also contributed to the year-over-year increase. Gross profit remained flat given the lower accrual of Syngenta’s upfront payment in the product mix compared to the previous year. GAAP net income and adjusted EBITDA were $6.2 million and $81.4 million, respectively, compared to $20.2 million and $81.2 million in the previous year. Adjusted EBITDA showed little change year over year, in line with gross profit performance. Deliberate cost management resulted in SG&A growth being almost entirely attributable to variable expenses which, combined with improved JV results and other income and expenses performance, resulted in steady profitability for the year.
For a full version of Bioceres’ fourth quarter & full fiscal year 2024 earnings release, click here.
Fourth Quarter & Full Fiscal Year 2024 Earnings Conference Call
Management will host a conference call and question-and-answer session, which will be accompanied by a presentation available during the webcast or accessed via the investor relations section of the company’s website.
To access the call, please use the following information:
Date: Tuesday, September 10, 2024 |
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Please dial in 5-10 minutes prior to the start time to register and join. The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website here.
International Replay Number: +44 204 525 0658 Replay ID: 272680 |
Time: 8:30 a.m. EST, 5:30 a.m. PST |
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US Toll Free dial-in number: 1-833-470-1428 |
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International dial-in numbers: Click here |
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Conference ID: 763481 |
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Webcast: Click here |
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About Bioceres Crop Solutions Corp.
Bioceres Crop Solutions Corp. (NASDAQ: BIOX) is a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change. To do this, Bioceres’ solutions create economic incentives for farmers and other stakeholders to adopt environmentally friendlier production practices.
The company has a unique biotech platform with high-impact, patented technologies for seeds and microbial ag-inputs, as well as next generation Crop Nutrition and Protection solutions. Through its HB4® program, the company is bringing digital solutions to support growers’ decisions and provide end-to-end traceability for production outputs. For more information, visit here.
Forward-Looking Statements
This communication includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include estimated financial data, and any such forward-looking statements involve risks, assumptions and uncertainties. These forward-looking statements include, but are not limited to, whether (i) the health and safety measures implemented to safeguard employees and assure business continuity will be successful and (ii) we will be able to coordinate efforts to ramp up inventories. Such forward-looking statements are based on management’s reasonable current assumptions, expectations, plans and forecasts regarding the company’s current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievement of the company to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management’s expectations or could affect the company’s ability to achieve its strategic goals, including the uncertainties relating to the other factors that are described in the sections entitled “Risk Factors” in the company's Securities and Exchange Commission filings updated from time to time. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. All forward-looking statements contained in this release are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date they are or were made, and the company does not intend to update or otherwise revise the forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.
Unaudited Consolidated Statement of Comprehensive Income |
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(Figures in million of U.S. dollars) |
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|
Three-month
|
Three-month
|
|
Fiscal Year
|
Fiscal Year
|
|||||
Revenues from contracts with customers |
124.3 |
|
105.1 |
|
464.8 |
|
419.4 |
|||
Initial recognition and changes in the fair value of biological assets at the point of harvest |
(0.3) |
|
(0.4) |
|
(0.0) |
|
0.6 |
|||
Cost of sales |
(76.6) |
|
(64.5) |
|
(278.2) |
|
(235.5) |
|||
Gross profit |
47.4 |
|
40.2 |
|
186.6 |
|
184.6 |
|||
% Gross profit |
38% |
|
38% |
|
40% |
|
44% |
|||
Operating expenses |
(36.9) |
|
(32.8) |
|
(140.9) |
|
(128.3) |
|||
Share of profit of JV |
(0.4) |
|
(0.1) |
|
4.0 |
|
1.2 |
|||
Change in net realizable value of agricultural products |
(0.4) |
|
(1.5) |
|
(2.4) |
|
(4.4) |
|||
Other income or expenses, net |
(0.3) |
|
(0.7) |
|
(2.5) |
|
1.1 |
|||
Operating profit |
9.5 |
|
5.1 |
|
44.8 |
|
54.2 |
|||
Financial result |
(15.6) |
|
(9.5) |
|
(34.8) |
|
(35.1) |
|||
Profit/(loss) before income tax |
(6.1) |
|
(4.4) |
|
10.0 |
|
19.1 |
|||
Income tax |
4.0 |
|
1.6 |
|
(3.8) |
|
1.1 |
|||
Profit/(loss) for the period |
(2.1) |
|
(2.8) |
|
6.2 |
|
20.2 |
|||
Other comprehensive loss |
(0.5) |
|
(1.4) |
|
(0.8) |
|
(0.8) |
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Total comprehensive profit/(loss) |
(2.6) |
|
(4.2) |
|
5.4 |
|
19.3 |
|||
|
|
|
|
|
|
|
|
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Profit/(loss) for the period attributable to: |
|
|
|
|
|
|
|
|||
Equity holders of the parent |
(1.6) |
|
(1.7) |
|
3.2 |
|
18.8 |
|||
Non-controlling interests |
(0.5) |
|
(1.1) |
|
3.0 |
|
1.4 |
|||
|
(2.1) |
|
(2.8) |
|
6.2 |
|
20.2 |
|||
Total comprehensive profit/(loss) attributable to: |
|
|
|
|
|
|
|
|||
Equity holders of the parent |
(1.9) |
|
(2.9) |
|
2.7 |
|
17.9 |
|||
Non-controlling interests |
(0.7) |
|
(1.3) |
|
2.7 |
|
1.4 |
|||
|
(2.6) |
|
(4.2) |
|
5.4 |
|
19.3 |
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Weighted average number of shares |
||||||||||
Basic |
62.8 |
|
62.0 |
|
62.8 |
|
62.1 |
|||
Diluted |
63.8 |
|
63.1 |
|
63.8 |
|
63.2 |
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Unaudited Consolidated Statement of Financial Position |
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(Figures in million of U.S. dollars) |
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ASSETS |
06/30/2024 |
06/30/2023 |
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CURRENT ASSETS |
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Cash and cash equivalents |
44.2 |
|
48.1 |
|
Other financial assets |
10.1 |
|
12.1 |
|
Trade receivables |
214.7 |
|
158.0 |
|
Other receivables |
26.7 |
|
28.8 |
|
Income and minimum presumed recoverable income taxes |
0.8 |
|
9.4 |
|
Inventories |
122.8 |
|
140.4 |
|
Biological assets |
0.3 |
|
0.1 |
|
Total current assets |
419.5 |
|
397.1 |
|
NON-CURRENT ASSETS |
|
|
|
|
Other financial assets |
2.2 |
|
0.4 |
|
Other receivables |
2.5 |
|
2.5 |
|
Income and minimum presumed recoverable income taxes |
0.0 |
|
0.0 |
|
Deferred tax assets |
32.6 |
|
7.3 |
|
Investments in joint ventures and associates |
39.5 |
|
39.3 |
|
Investment properties |
0.6 |
|
3.6 |
|
Property, plant and equipment |
73.8 |
|
67.9 |
|
Intangible assets |
174.7 |
|
173.8 |
|
Goodwill |
112.2 |
|
112.2 |
|
Right of use asset |
11.4 |
|
13.9 |
|
Total non-current assets |
449.3 |
|
420.9 |
|
Total assets |
868.8 |
|
818.1 |
|
LIABILITIES |
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Trade and other payables |
168.1 |
|
150.8 |
|
Borrowings |
136.0 |
|
107.6 |
|
Employee benefits and social security |
7.3 |
|
9.6 |
|
Deferred revenue and advances from customers |
3.9 |
|
24.9 |
|
Income tax payable |
4.8 |
|
0.5 |
|
Consideration for acquisition |
4.1 |
|
1.4 |
|
Lease liabilities |
3.1 |
|
3.9 |
|
Total current liabilities |
327.3 |
|
298.7 |
|
NON-CURRENT LIABILITIES |
|
|
|
|
Borrowings |
42.1 |
|
60.7 |
|
Deferred revenue and advances from customers |
1.9 |
|
2.1 |
|
Joint ventures and associates |
- |
|
0.6 |
|
Deferred tax liabilities |
56.9 |
|
35.8 |
|
Provisions |
0.9 |
|
0.9 |
|
Consideration for acquisition |
2.1 |
|
3.6 |
|
Secured notes |
80.8 |
|
75.2 |
|
Lease liabilities |
8.0 |
|
10.0 |
|
Total non-current liabilities |
192.8 |
|
188.9 |
|
Total liabilities |
520.1 |
|
487.6 |
|
EQUITY |
|
|
|
|
Equity attributable to owners of the parent |
314.0 |
|
298.6 |
|
Non-controlling interests |
34.8 |
|
31.9 |
|
Total equity |
348.7 |
|
330.5 |
|
Total equity and liabilities |
868.8 |
|
818.1 |